WORLD TRADE  
ORGANIZATION  G/ADP/N/1/BRA/2/Suppl.5 
G/SCM/N/1/BRA/2/Suppl.5 
12 April 2011 
 
 (11-1820) 
Committee on Anti-Dumping Practices Committee on Subsidies and Countervailing Measures Original:   English 
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
BRAZIL 
 
Supplement
 
 
  The following communication, dated 11 April 2011,  is being circulated at the request of the 
Delegation of Brazil.  
_______________ 
 
 
THE MINISTRY OF DEVELOPMENT, INDUSTRY AND FOREIGN TRADE  
THE SECRETARY OF FOREIGN TRADE 
 
Directive 21 OF 18 OCTOBER 2010 
(published in the Official Gazette of 20 October 2010) 
(republished in the Official Gazette of 25 October 2010) 
  THE SECRETARY OF FOREIGN TRADE OF THE MINISTRY OF DEVELOPMENT, 
INDUSTRY, AND FOREIGN TRADE, in the exercise of the duties and powers conferred by 
article 15, subsection VII, of Annex I to De cree 7096 of 4 February 2010, and taking into 
consideration article 6 of the Resolution 63 of the Brazilian Chamber of Foreign Trade (Câmara de 
Comércio Exterior – CAMEX) of 17 August 2010, published in the Official Gazette of 18 August 
2010, makes the following known: 
 
Art. 1 .  The broadening of the scope of the anti-dump ing measure provided for in article 10-A of  
Law 9019 of 30 March 1995, enacted through Law 11786 of  25 September 2008, to the importation 
of goods from third countries, as well as parts, pi eces, and components for any good subject to the 
anti-dumping measure currently in force, shall a dhere to the provisions of Resolution 63 of the 
Brazilian Chamber of Foreign Trade (Câmara de Comé rcio Exterior – CAMEX) of 17 August 2010, 
when harmful circumvention practices designed to thwart the application of the anti-dumping measure 
currently in force are identified.   Sole Paragraph.  Pursuant to article 3 of CA MEX Resolution 63 of 2010, the investigation of 
circumvention practices shall be initiated and conducted as per this Directive. 
 
Art. 2 .  Pursuant to article 5 of CAMEX Resoluti on 63 of 2010, CAMEX shall have the duty and 
authority to decide on the extension of the anti- dumping measure currently in force based on the 
opinion issued by the Brazilian Trade Defense De partment (Departamento de Defesa Comercial – 
DECOM), a component of this Secretariat, in accordance with article 18, subsection VI, of the Annex I to Decree 7096 of 4 February 2010. G/ADP/N/1/BRA/2/Suppl.5 
G/SCM/N/1/BRA/2/Suppl.5 Page 2 
 
 
   
CHAPTER I 
DETERMINATION OF CIRCUMVENTION 
 Art. 3 .  The broadening of the scope of anti-dumping measures may encompass: 
 
I  goods which are identical to the good subject to the anti-dumping measure in all 
aspects or any other good with very similar, even if  not identical, characteris tics to those of the good 
subject to the anti-dumping measure; and 
 
II  parts, pieces, and components of th e good under subsection I, including raw 
materials, intermediate products , and any other inputs employed in the manufacture of said good. 
 Art. 4 .  For purposes of this Directive and pursuant to article 2 of CAMEX Resolution 63 of 2010, the 
following shall be considered circumvention: 
 
I   the introduction into the national territory of parts, pieces, and components for the 
purpose of the manufacture of a good resembling the good subject to the anti-dumping measure or of another product with characteristics that although no t identical are very similar to those of the good 
subject to the anti-dumping measure;  
 
II  the introduction into the national territory of a good manufactured in third countries 
using parts, pieces, or components originating in or from the country subject to the anti-dumping measure;  
III  the introduction into the national territory of a good with minor modifications that do 
not affect such good's end use or purpose; or  
IV  any other practice designed to thwart  the effective application of anti-dumping 
measures.  
Art. 5 .  Investigations to determine the existence of  circumvention practices shall be initiated at the 
request of the interested party in the original inves tigation or, in the event of the extension of the anti-
dumping measure following the most recent review of the anti-dumping measure in question, as provided for in article 21, paragraph 3, of D ecree 1602 of 23 August 1995, through a written petition 
or, exceptionally, by this Secretariat. 
 
 Paragraph 1.  For the purposes of this Direc tive, the following are considered interested 
parties in the investigation of circumvention practices:  
I  the applicant for the investigation of alleged circumvention practices; 
 
II  Brazilian manufacturers of goods resembling the good subject to the anti-dumping 
measure;  
III  the government of the exporting country of the good subject to the investigation of 
circumvention practices; 
 
IV  the manufacturers or exporters of the good subject to the investigation of 
circumvention practices;   G/ADP/N/1/BRA/2/Suppl.5 
 G/SCM/N/1/BRA/2/Suppl.5  Page 3 
 
 
  V  Brazilian importers of the good subject to the investigation of circumvention 
practices;  
VI  the companies responsible for the ma nufacture of the imported parts, pieces, or 
components; 
 
VII  other parties as determined by DECOM. 
  Paragraph 2.  The application set forth in the heading of this article shall include evidence of 
circumvention practices, as provided for in article 2,  paragraphs 1, 2, and 3,  of CAMEX Resolution 63 
of 2010, namely:  
I  the qualification of the applicant, incl uding indication of the representative before 
DECOM; 
 
II  a detailed description of the alleged circ umvention practice, indicating the exporting 
country of the good in question or of the imported parts, pieces, or components and, where possible, 
of the related manufacturers or exporte rs, the importers, and/or processors; 
 
III  detailed description of the imported good and,  in the case of article 4, item III, of this 
Directive: 
 
(a) information on  possible differences between  the imported good and the good subject 
to the anti-dumping measure; 
(b) information on small changes introduced in the imported product, as compared with 
the product object of the anti-dumping measure; 
(c) information on the end use and purpose of the modified good; 
(d) estimated additional cost for the minor modification, where applicable; 
IV  information on the distribution channels for the good in question; 
 
V  evidence that the value of the parts, pie ces, or components originating in or from the 
country subject to the anti-dumping measure represen ts sixty per cent (60%) or more than the total 
value of the good's parts, pieces, or components;  
VI  information on a shift in trade flows occurring after initiation of the procedure that 
gave rise to the application or to the most recen t extension of the anti-dumping measure, taking into 
account the twelve most recent months to the date of the application.  In exceptional and duly justified 
circumstance, the period set forth above may be  less than twelve months but never less than 
six months, including:  
(a) Brazilian imports of the good subject to the alleged circumvention practice; 
(b) Brazilian imports of parts, pieces, and components originating in or from the country 
subject to the anti-dumping measure; 
(c) imports by third countries of parts, pieces, or components originating in or from the 
country subject to the anti-dumping measure; G/ADP/N/1/BRA/2/Suppl.5 
G/SCM/N/1/BRA/2/Suppl.5 Page 4 
 
 
  (d) where possible, information on the existence of installed capacity or production 
volumes for the good subject to the alle ged circumvention practice which are 
incompatible with the volume exported to Brazil; 
VII   evidence of practices aimed at neutralizing the corrective effects of the anti-dumping 
measure in force, including data on the average volume and price of the good subject to the alleged 
circumvention practice or of the parts, pieces, or components, taking into account, to this end, the 
twelve most recent months prior to receipt of th e application.  In exceptional and duly justified 
circumstances, the period above may be less than tw elve months but never less than six months; and 
 
VIII   evidence that the good in question is be ing exported to Brazil or sold on the Brazilian 
market at a price below the regular price determined  in the original investigation or during the most 
recent review of the anti-dumping measure;   Paragraph 3.  Applications containing conf idential information shall be subject to the 
provision of article 28 of Decree 1602 of 1995. 
  Paragraph 4.  The application and supplementa ry information, including schedules, shall be 
submitted in hard copy and optical format.  The corresponding electronic files must be compatible 
with the system employed by DECOM:  
I  preferably, the electronic files should not be compressed; however, in case the 
compression of the electronic files is necessary the Department must be consulted.  
II  two authentic copies of each file shall be  submitted in optical format, a protected and 
unprotected file, respectively, with an accompanying  completed and signed "Status Report" for each 
optical format file submitted to DECOM, as per the model report attached to this Directive. 
 Art. 6.   The application shall be submitted to a prelim inary analysis for the purpose of determining 
whether the petition is duly documented or whether a dditional information is required.  The applicant 
shall be notified of the result of the analysis fift een days from formal receipt of the application. 
 
 Paragraph 1.  In the event additional inform ation is requested, a new analysis shall be 
performed to determine if the application is duly documented. 
  Paragraph 2.  The applicant shall have fifteen  days from issuance of the request for additional 
information to submit the requested information to DECOM. 
 
 Paragraph 3.  The applicant shall be notified in  a period of fifteen days of the supplementary 
information in the event the application is deemed without merit.   Paragraph 4.  In the event the deadline in pa ragraph 2 is not met, the application shall be 
deemed without merit. 
  G/ADP/N/1/BRA/2/Suppl.5 
 G/SCM/N/1/BRA/2/Suppl.5  Page 5 
 
 
  CHAPTER II 
INVESTIGATION 
 
Section I 
Launch 
 
Art. 7.  The accuracy and adequacy of the information set  forth in the application shall be analyzed, 
with a view to determining whether sufficient eviden ce exists to warrant launch of an investigation.  
To this end, information from other readily available sources may be considered. 
 
Art. 8.  The applicant shall be notified of  the authorization or denial of the investigation within a 
period of thirty days from formal receipt of the application or, where applicable, of the additional 
information.  
 Paragraph 1.  The application shall be denied and the case set aside where: 
 
I  the applicant is not the interested part y, as per the heading of article 5 of this 
Directive, and/or if the representation has not been brought into compliance;  
II  the application includes information of a confidential nature and/or in a foreign 
language, in violation of the provisions of article 28,  paragraph 1, and/or artic le 63, paragraph 2, of 
Decree 1602 of 1995; or  
III  the application does not include sufficien t evidence of the circumvention of the anti-
dumping order in force. 
 
 Paragraph 2.  In the event the application is deemed to contain sufficient evidence of 
circumvention practices, the investigation shall be  launched and the Order pub lished in the Official 
Gazette.  A period of twenty days from publica tion of the Order authorizing launch of the 
investigation shall be granted for purposes of  submitting comments and requesting hearings. 
 
 Paragraph 3.  The investigation into circum vention practices shall commence on the date the 
Order is published in the Official Gazette.   Paragraph 4.  Parties may use facsimile data and image transmission systems or other similar equipment to meet the deadline in paragraph 2 of th is article.  The formal procedure that started the 
investigation of circumvention practices shall incl ude the email address and fax number used for this 
purpose.   Paragraph 5.  The interested party is responsible for assuring receipt of the transmitted information by DECOM.  Only information recei ved by 7:00 p.m. on the date of the deadline 
established in paragraph 2 shall be considered. 
 
 Paragraph 6.  The deadline specified in para graph 2 shall be deemed fulfilled only if the 
identical document to that transmitted via a facsimi le data and image transmission system or similar 
system is registered within five working days following the deadline in paragraph 2 at the address 
specified in the formal procedure that starte d the investigation of circumvention practices. 
 
 Paragraph 7.  Authorization requests from other parties claiming an interest in the case in question must be accompanied by documentation demonstrating such interest and indicate the 
respective legal representatives, as prescribed in th e applicable law.  Requests must be presented G/ADP/N/1/BRA/2/Suppl.5 
G/SCM/N/1/BRA/2/Suppl.5 Page 6 
 
 
  within twenty days from publication of the formal  procedure that started the investigation of 
circumvention practices.   Paragraph 8.  Notwithstanding the right to  establish all confidentiality requirements as 
deemed necessary, the full text of the applicati on for launch of the investigation may be made 
available in electronic format to the interested parties through a written request to the email address 
specified in the formal procedure that starte d the investigation of circumvention practices. 
  Paragraph 9.  Following launch of the i nvestigation, DECOM shall notify the Brazilian 
Revenue Department, a component of the Finance Ministry, to adopt any and all measures as 
necessary, to which end it shall indicate the CAMEX Order authorizing the ap plication or extension 
of the anti-dumping measure and present, concomitantly , a copy of formal procedure that started the 
investigation of circumvention practices. 
 
Section II 
Proceedings 
 
Art. 9.  The investigation into the alleged circumve ntion practice shall encompass the most recent 
possible twelve month period prior to official rece ipt of the application.  In exceptional and duly 
justified circumstances, the mandatory period may be  less than twelve months but never less than six 
months. 
  Paragraph 1.  DECOM decisions may take in to account the information included in the 
opinion on which the final determination regarding the original investigation or the last review of the 
anti-dumping measure, or any other readily available reviews, was based. 
 
Section III 
Information 
 
Art. 10 .  Interested parties shall be granted ample opportunity to submit any written evidence deemed 
pertinent for the investigation. 
 
Art. 11 .  DECOM may issue a questionnaire to all inte rested parties, with the exception of the 
governments of the exporting countries, regarding the provisions of article 5, paragraph 1, of this 
Directive.  Interested parties shall have thirty  days from issuance to submit the completed forms. 
 
 Paragraph 1.  Requests for an extension of the deadline for submission of the completed 
questionnaires shall be considered.  Where the need for an extension is demonstrated, an additional 
period of up to ten days may be granted, taking in to account the respective investigations periods. 
  Paragraph 2.  With a view to ensuring complia nce with the deadline established in this article, 
the provisions of article 8, paragraphs 4, 5, and 6, of this Directive shall apply mutatis mutandis. 
 
 Paragraph 3.  In the event any of the inter ested parties refuses to grant access to required 
information, fails to provide such information w ithin the established timeframe, or, further, in any 
way impedes the investigation, the formal opinion underlying DECOM's final determination shall be 
prepared based on the best information available, in accordance with article 66 of Decree 1602 of 
1995. 
  Paragraph 4.  Interested parties shall be notified upon issuance of the questionnaires of the intention to conduct on-site investigations, pursuant to article 12 of this Directive. 
  G/ADP/N/1/BRA/2/Suppl.5 
 G/SCM/N/1/BRA/2/Suppl.5  Page 7 
 
 
  Art. 12.  In the course of the investigation, efforts shall be made to verify the accuracy of the 
information provided by the interested parties.   Paragraph 1.  Investigations  may be conducted within the territorial boundaries of other 
countries, provided authorization is granted by the pertinent companies, the government 
representatives of the country in question are notifie d, and such representatives do not raise objections 
to the investigation.  The procedures described in article 65 of Decree 1602 of 1995 shall be applied to 
the investigations conducted in other countries.  
 Paragraph 2.  Investigations may be conducted in establishments of interested parties located 
in the national territory following prior authorization from such parties.   Paragraph 3.  The results of the investigati ons conducted pursuant to pa ragraphs 1 and 2 shall 
be attached to the Case File, without prejudice to the right of confidentiality. 
 
Art. 13 .  Information deemed confidential by its very nature, that is, which is provided confidentially 
by a party to an investigation, shall, if well founded, be treated as confidential and shall not be 
disclosed without the express authorization of th e providing party.  Information classified as 
confidential shall be subject to a separate procedure.  
 Paragraph 1.  Confidential information shall be  separated from the main Case File, at which 
time a non-confidential justification and summary  offering a reasonable understanding of the 
confidential information shall be submitted. In  cases in which a summary cannot be provided, a 
written justification must be presented on the da te the confidential information is submitted. 
 
 Paragraph 2.  Information submissions classifi ed as confidential which are not demonstrated 
to be of a confidential nature and which the provi ding party refuses to disclose, whether in full or 
summarized form, may be disregarded, except wher e the appropriate source convincingly shows the 
accuracy of such information.   Paragraph 3.  The term CONFIDENTIAL sha ll be labeled at the center top and bottom of 
each page, preferably in a color different from that used throughout the document, including, 
additionally, the page number and total number of pages making up the document. 
 
Section IV 
Defense 
 
Art. 14.  Throughout the investigation, interested parti es shall be granted ample opportunity to defend 
their interests.  To this end, parties may submit a written request for all case information, which shall 
be made available immediately to the requesti ng parties, with the exception of confidential 
information and internal government documents.  The parties shall be provided with the opportunity 
to defend their interests through written subm issions based on the disclosed information. 
 
Section V 
Final Proceedings 
 
Art. 15.  Prior to drafting of the final decision, DECO M shall notify the interested parties of the 
essential facts under review on which the final opinion is based, while establishing, further, a period 
of ten days from issuance of the notice for th e submission of comments to the final opinion. 
  Paragraph 1.  With a view to assuring fulfillmen t of the deadline set forth in the heading, the 
provisions of article 8, paragraphs  4, 5, and 6, of this Directive shall apply mutatis mutandis. G/ADP/N/1/BRA/2/Suppl.5 
G/SCM/N/1/BRA/2/Suppl.5 Page 8 
 
 
   
 Paragraph 2.  Following expiry of the dead line established in the heading, the proceedings 
shall be deemed concluded and any information received subsequently shall be disregarded for 
purposes of the final opinion. 
 
Section VI 
Conclusion of the Investigation 
 
Art. 16.  DECOM shall conclude its investigation within six months of the publication of the Order 
authorizing launch of the investigation, except in exceptional circumstances, in which case the 
investigation may run nine months.  Art. 17.  The investigation shall be concluded without  a recommendation for extension of the anti-
dumping measures in question where: 
 
I  there is insufficient evidence of circumvention practices; 
 
II  the value of the parts, pieces, or com ponents originating in or from the country 
subject to the anti-dumping measure represents less than 60 per cent of the value of the parts, pieces, or components of the good; or 
 
III  the total value-added of the production process is greater than 25 per cent of the 
manufacturing cost.   Sole Paragraph.  For the purpose of this Directive, the manufacturing costs include all 
variable and fixed production costs, ex cept depreciation and packaging expenses. 
 Art. 18.  The investigation shall be concluded with  a recommendation for extension of the anti-
dumping measure in force where DECOM arrives at a positive determination as to the existence of 
circumvention practices.  
Art. 19 .  Positive determination as to the existence of  circumvention practices constitutes a breach of 
price commitments subject to the provisions of artic le 38 and article 43, paragraph 2, of Decree 1602 
of 1995.  
CHAPTER III 
PROCEDURAL ACTS AND TERMS 
 
Art. 20.  Procedural acts and terms are not contingent on a special format, such that interested parties 
must observe the instructions set forth in this Directive for preparation of all pertinent general 
applications and documents.  App lications and documents not prepar ed as established herein shall not 
be attached to the Case File. 
 
 Paragraph 1.  All procedural acts and terms shall be submitted in writing and all hearings 
reduced to writing in Portuguese, to which end th e inclusion of any documents in the Case File 
originally written in a foreign language  shall require a certified translation. 
 
 Paragraph 2.  All procedural acts are public and the right to consult the Case File and request 
the status of the investigation is restricted to the interested parties and their legal representatives, with 
the exception of confidential information and internal government documents.   G/ADP/N/1/BRA/2/Suppl.5 
 G/SCM/N/1/BRA/2/Suppl.5  Page 9 
 
 
  CHAPTER IV 
GENERAL PROVISIONS 
 
Art. 21 .  The time period established in this Directive shall commence on the date of issuance of the 
respective correspondence.  Running of such time periods shall not include the date of 
commencement but shall include the date of expiry.   Paragraph 1.  Running of the time period shall commence on the first business day following issuance of the respective correspondence. 
 
 Paragraph 2.  All responses and information re quested by DECOM shall be registered at the 
General Protocol Desk of the Ministry of Developm ent, Industry, and Foreign Trade through the date 
of expiry.  The time period shall be extended to  the following business day where the date of expiry 
falls on a non-business day or the respective busin ess day ends before the conclusion of normal 
business hours. 
  Paragraph 3.  The time periods expressed in  days shall be counted continuously.  The 
deadlines established in months or years shall run from  beginning date to end date.  In the event the 
month of expiry does not have an equivalent day to  that of the month of commencement, the date of 
expiry shall be the last day of the month of expiry. 
 
 Paragraph 4.  Extension re quests permitted under this Directive shall only be received if 
submitted prior to the original deadline.  Art. 22 .  The time periods in this Directive may be extended one time for the same period, except for 
those cases for which the extensi on has already been established. 
 Art. 23 .  This Directive shall enter into force on the date of its publication. 
 
WELBER BARRAL 
  G/ADP/N/1/BRA/2/Suppl.5 
G/SCM/N/1/BRA/2/Suppl.5 Page 10 
 
 
  ANNEX 
 
 
STATUS REPORT 
 
  
INTERESTED PARTY: CORPORATE TAXPAYER NO. 
NAME OF OPTICAL FORMAT 
DATE RECORDED SUMMARY DESCRIPTION OF CONTENT 
  
 
  
Annex Name of 
corres- 
ponding 
file Size of 
compressed 
file (bytes) 
 Size of 
compressed 
file (bytes) Employee 
responsible 
for the 
information Signature Technician 
responsible 
for 
recording 
the file Signature 
        
        
        
        
        
        
        
        
        
        
        
 
PHYSICAL FORMAT: (__) CD (__) DVD (__) OTHER (sp ecify________________) 
 
I certify that the attached physical format cont ains a protected and unprotected copy of the 
above described files, in a confidential and non-confidential version, respectively.     
 
Location and date 
 
Legal Representative: Legal Representative: 
Name: Name: 
Individual Taxpayer No: Individual Taxpayer No: 
Telephone: Telephone: 
Fax: Fax: 
Email: Email: 
 (*) Republished due to non-publication of Anne x in the Official Gazette of 20 October 2010 
 
__________  Signatures 
 
Responsible Technician 
 
Legal Representative